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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (48694)	2/20/2006 2:02:51 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

"If america as a whole significantly cuts back spending then corporate profits will quickly dry up." I really wonder if such a large percentage has really lived way beyond their means the past 2-3 years because of this mania. If it is say 20% of the people that reside in the 1/3rd of the country in a housing price bubble that won't be the end of the world if they reign in their spending some. Big ticket non discretionary items tied to the home like furniture, kitchen remodeling and big plasma TV's take a hit but it shouldn't effect other nondiscretionary items as much. Some folks go bankrupt or get their home foreclosed on and start again. They keep their credit cards and the same spending patterns except now they rent instead of own, downsize their car and don't need all the furniture anymore. Biggest problem I see is in local areas with undiversified economies too tied to the housing boom.